Interim results31 December 2015

Presented byChristopher Kelaher, Managing DirectorDavid Coulter, Chief Financial Officer

24 February 2016

$80.6m $95.4m

1H 14/15 1H 15/16

$104.0m $114.6m

1H 14/15 1H 15/16

Record performance

UNPAT+ 18%

Operating Cashflow*+ 10%

• Record 1H UNPAT of $95.4m

• Broadened earnings base has offset volatile market conditions

• Shadforth fully integrated

• Investment Management business reshaped

• Low net debt

• Well positioned to pursue future opportunities

*Pre-tax operating cash flow

28.7c 31.8c

1H 14/15 1H 15/16

Underlying EPS+ 11%

25.0c 28.5c

1H 14/15 1H 15/16

Dividend per share+ 14%

2

Creating shareholder value

* Based on 20 day VWAP to 22 February 2016

Organic Growth

Accretiveacquisitions

Productivity& efficiency

Shareholdervalue

Net funds flow

$932mAdvice: $741m

Platform: $147m

Inv Mgmt $44m

Acquisition of Shadforth materially accretive -4.1 cps

$13m pre-tax cost synergies realised

Cost to income ratio 55.5%

Reinvesting productivity savings in IT and member experience

Fully franked 28.5cps interim dividend

7% dividend yield*

3

Funds and flows performance

1H 15/16 2H 14/15 1H 14/15

Opening FUMA $104,707m $100,353m $77,110m

Flagship Platform net flows $291m $856m $860m

Platform (Transition) net flows ($144m) $0m ($42m)

Total Platform net flows $147m $856m $818m

Investment Management net flows* $44m $371m $403m

Funds Under Advice net flows^ $741m $1,270m $884m

Acquired FUMA - - $19,542m

Investment returns / Other ($2,200m) $1,858m $1,596m

Closing FUMA $103,439m $104,707m $100,353m

Average FUMA $104,887m $104,786m $95,586m

*Shadforth Investment Management 1H 15/16 net flows $166m^Shadforth Advice 1H 15/16 net flows $241m

• Twelfth consecutive quarter positive net flows

• Financial Advice now has similar scale to Platform business

• Flows to flagship platforms impacted by outflows from large, low margin corporate super account

• Platform consolidation on track

4

Shadforth embedded and accretive

Shadforth is a leading client focused advice and wealth management firm

Financial 4.1cps accretive in 1H 15/16UNPAT up 57% on PCP$13m pre-tax cost synergies realised in the half

Operating Strong net advice flow of $241m New CEO and stable management team

Enhanced scale Diversified earnings baseBest Advice adopted across group

Strategic

Exceeded targeted annual $15m pre-tax recurring cost synergies

5

Resilience across all businesses

UNPAT $42.7m 1%Gross margin stable, net operating margin up on 2H15Reinvesting in the customer experience, including enhanced IT

UNPAT $40.6m 52%Benefiting from completed integration and full realisation of synergiesResilient and sustainable business model in the face of market volatility

Platform management and administration

UNPAT $16.4m 3%Focusing on a strong multi-manager offering, including ShadforthReduced exposure to volatile institutional funds flow

Investment management

UNPAT $3.4m 8%Investment in organic strategy paying dividendsStrong long term sector growth prospects

Trustee services

Financial advice and distribution

The Corporate segment recorded an UNPAT of ($9.8m) 1H 15/16 , ($10.2m) 1H 14/15 6

FinancialsDavid CoulterChief Financial Officer

7

Financial overview

^Shadforth July 2014 Underlying EBITA $4.9m, Underlying NPAT $3.2m (Shadforth acquired 1 August 2014).*FUMA and margin calculations exclude Perennial FUM and associated revenue & expenditure (see ASX announcement on 27/01/2016). 8

• Gross margin growth of $17.7m driven by an additional month of Shadforth revenue in the current period plus accretive growth in the existing business.

• Prudent and disciplined cost management remains a key feature ^Exclusive of divested Perennial business*Shadforth July 2014 Underlying EBITA $4.9m, Underlying NPAT $3.2m (Shadforth acquired 1 August 2014).

P&L Breakdown

Detailed list and explanation of reconciling items provided in Appendix B and Appendix O

1H 15/16^ 1H 14/15*

$'m $'m $'m %Gross Margin 275.1 257.4 17.7 7%

Other Revenue 22.1 21.4 0.7 3%

Operating Expenditure (165.2) (166.5) 1.2 1%

Equity Accounted Profits 2.8 3.3 (0.5) -15%

Net Non Cash (6.1) (5.5) (0.6) -11%

Underlying EBITA 128.7 110.2 18.6 17%

Net Interest (1.3) (2.2) 0.9 40%

Income Tax & NCI (34.1) (28.4) (5.7) -20%

UNPAT excl. Divested Perennial Business 93.3 79.5 13.7 17%

Divested Perennial Business 2.1 1.0 1.1 104%

Underlying NPAT 95.4 80.6 14.8 18%

Significant Items/Amortisation 38.6 (19.1) 57.7 302%

Statutory NPAT 134.0 61.5 72.5 118%

Change on pcp

9

Debt position and ratios

1H 15/16 1H 14/15

Gross Borrowings ($’M) 207.4 208.3Net Debt ($’M) 29.0 73.9Return on Equity (%) 13.6% 12.8%Debt to Equity (%) 12.8% 13.3%Net Debt to Underlying EBITDA (times) 0.1 0.3

Net Interest Cover (times) 97 38

• Borrowings primarily used to fund acquisitions (DKN, Plan B and Shadforth)• Surplus borrowing facility and substantial headroom in covenants • Strength provides security and ability to capitalise on opportunities• RoE improving with growth and synergy realisation

10

$16.8m $16.4m

1H 14/15 1H 15/16

$3.2m $3.4m

1H 14/15 1H 15/16

$26.7m $40.6m

1H 14/15 1H 15/16

$43.0m $42.7m

1H 14/15 1H 15/16

Segment performance

Financial Advice+ 52%

Platform- 1%

Inv. Management*- 3%

Trustee+ 8%

Avg. FUA $50.5b + 13%Net Operating Margin 0.24% + 6bps

Avg. FUM $19.8b + 10%Net Operating Margin 0.21% - 2bps

Avg. FUS $29.3b + 14%Net Operating Margin 0.03% - 1bps

Avg. FUA $34.6b + 6%Net Operating Margin 0.37% - 2bps

• Enhanced performance in advice attributable to synergies extracted from the Shadforth acquisition combined with strong net inflows

• Timely acquisitions have broadened and diversified our earnings, building resilience for periods of market volatility

• Reinvesting in core businesses

*Investment Management segment results are shown exclusive of the divested Perennial business 11

39%

11%

45%

5%

58%

13%

22%

7%

Growing and diversifying earnings

Key benefits of this shiftHigher quality earnings Improved operating modelStrengthened balance sheet

Strengthened recurring

revenue base

Platform

Investment Management

Financial Advice

Trustee

Net Operating Revenue $292m

Net Operating Revenue $155m

1H 09/10

1H 15/16

Shadforth

12

$89.

0m

$87.

9m

$132

.9m

$1.1m $1.1m

($2.6m) ($0.7m)

$4.5m

$11.3m

$29.1m

UnderlyingEBITAex SFG

1H 14/15

DivestedPerennialBusiness

Gross Margin Opex OtherUnderlying

EBITA

UnderlyingEBITAex SFG

1H 15/16

SFGUnderlying

EBITA1H 14/15

SFG RevenueIncrease

SFGCost Savings

UnderlyingEBITA

1H 15/16

$4.9m - SFG Underlying EBITA Jul 14 (pre-acquisition)

M&A complements organic growth

• Synergies realised through increased scale and removal of duplicated functions

Total recurring cost synergies of $13.0m =$11.3m incremental synergies + $1.7m synergies achieved 1H 14/15

$24.2m - SFG Underlying EBITA Aug – Dec 14

13

$171

.9m

$167

.1m

$7.5m ($3.6m)

($11.3m)$0.5m $1.1m $1.1m

Base Opex1H 14/15

DivestedPerennialBusiness

SFG Cost Savings Labour I.T. Other Opex1H 15/16

Operating costs

• Targeting organic growth through IT investment• Labour cost increase below inflation

SFG Opex Jul 14

Total recurring cost synergies of $13.0m =$11.3m incremental synergies + $1.7m synergies achieved 1H 14/15

14

$150

.5m $1

78.4

m

$114.6m

($45.2m)

$54.0m

($16.9m)

$5.3m

($83.9m)

Jun 15Corp Cash

Pre-tax operatingcash flows

Income tax paid Perennialdivestment (incl

transaction costs)

Other Investing andFinance

Reclassified fromheld for sale

DividendsPaid

Dec 15Corp Cash

Generating strong free cash flow

• Pre-tax operating cash flows up 10% on 1H 14/15

15

$39.5m$41.0m

$43.0m$41.3m

$42.7m

0.69% 0.68% 0.67%0.65% 0.65%

0.39% 0.39% 0.39%0.36% 0.37%

1H 13/14 2H 13/14 1H 14/15 2H 14/15 1H 15/16

UNPAT Gross Margin % Net Operating Margin %

Platform profitability growth continues

• Profitability reinvested in IT to build a platform for future organic growth • Margin is not simply about competition – newer products are more cost efficient

16

39% 40% 39%

37%37% 37%

$19.6b

6%6% 6%

$49.4b

15%16% 16%

$34.5b

3%2% 2%

Asset Allocation 1H 14/15 Asset Allocation 2H 14/15 Asset Allocation 1H 15/16 FUMA by Segment 31/12/15

Australian Equities Fixed Interest / Cash Property International Equities Other

Financial Advice and Distribution

Investment Management

Platform Management and

Administration

FUMA $104.7bFUMA $100.4b

FUMA $103.4b

Group asset allocation

17

Strategy and outlookChristopher KelaherManaging Director

18

Resilient business model

Cost to income ratio has reduced to 55.5%, down 4% Net operating margin improvement

Increased contribution from Financial Advice and Distribution balances exposure to Platform Management and Administration

Reduced exposure to volatile institutional funds flow

Reliable cost control

Strong cash flow conversion Consistently high dividend payout ratio

Predictable cash flows

Diversified earnings base

Underlying growth in superannuation assets Aging population, high per capita growthComplexity drives need for advice

Positive long term fundamentals

19

$0b

$500b

$1,000b

$1,500b

$2,000b

$2,500b

$3,000b

$3,500b

Jun2005

Jun2006

Jun2007

Jun2008

Jun2009

Jun2010

Jun2011

Jun2012

Jun2013

Jun2014

Jun2015

Jun2018

Jun2021

Jun2025

Positive industry fundamentals

* Source: KPMG Supertrends, May 2015 and APRA statistics

Industry fundamentals underpinned by growing superannuation system

Total superannuation assets*• Strong bi-partisan political support and

increasing economic imperative for financial independence

• Compulsory superannuation regime has underpinned CAGR of 9.4% in Australian superannuation assets over past decade

• Ageing population

• High per capita wealth

• Increasing complexity drives need for advice

• Significant intergenerational wealth transfers occurring

20

Industry consolidation is lifting standards

Industry IOOF

Member Benefits

• Cost transparency

• Quality of advice increasing

• Improved client engagement

• Enhanced regulatory oversight

Participant Benefits

• Higher standards lift consumer confidence

• Scale enables reinvestment in members and governance

Reinvestment in member service

• Best Advice • Functionality and choice

IT capability and delivery

• Improved functionality, flexibility

Scale to attract best advisors

• Education standards, compliance support, practice development

Governance

• Centralised control environment, risk management and reporting framework

Increased returns to shareholders

• Consolidation delivers benefits to all industry participants

• IOOF has consistently adopted best of breed in its acquisition integrations which is pivotal to benefits realisation across the sector

• Consolidation has been transformational for IOOF and fundamental to our success

21

Systems and governance

• Not a static environment – has evolved significantly and will continue to evolve

• Ongoing commitment to proactively achieving the highest standards of compliance

• PwC’s recommendations adopted

• PwC’s testing confirms recommendations fully designed and implemented, save for a very small number which will soon be completed

16 corporate offices

8 IT platforms

8 administration systems

3 RSE licenses

2009: IOOF/AWM/Skandia merger Today

Series of reviews (e.g. FoFA)

• Decentralised control environment

• Tailored risk management frameworks

• Manual consolidation of risk reporting

• Centralised control environment

• Standardisation of policies and procedures

• Web-based risk management and reporting framework

22

Generating growth through insights

Meeting client needs through an open architecture model• Creating a modular value chain • Differentiated capabilities - Managed Accounts, SMSF / SAF

Developing integrated client insights to improve the value of advice• Driven by client centric design

Supported through market-leading service delivery• Transformation of service delivery strategy and functions

Consumer shift toward value over price Experience is the differentiator

• Top quartile service• Relevance and immediacy• Easy to deal with

4337

20

EXPERIENCE PRODUCTS PRICE

50

34

16

EXPERIENCE PRODUCTS PRICE

TODAY 2020 23

• 146 FTE staff & contractors augmented by consultant developers

• Building leading-edge technology that enables us to effectively participate in a digitally-focused environment

• Development initiatives focus on simplifying the experience for our members

Supported by the right technology

Opportunity

• Increasing activity and enhancement of our cyber-security capability

• Exploring potential opportunities in the disruptive fintech space e.g. robo-advice

24

Summary

IOOF continues to deliver

• Recurring EPS growth

• Strong cash flows

• Consistently strong dividend yield

• Low gearing

Well positioned for short term volatility

Long term fundamentals remain strong

Attractive M&A environment

25

Appendices

26

10cps

15cps

20cps

25cps

30cps

35cps

Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15

Underlying EPS (cents) DPS (cents) ASX200 (RHS Base 100) IFL (RHS Base 100)

21.8c21.8c

21.0c

24.7c

20.5c

21.8c

24.7c24.7c

23.7c

Appendix A: TSR

TSR = 210% April 2009 – 31 December 2015 (18% annualised)

27

• Amortisation, Perennial divestment and Shadforth integration have had a material impact on statutory NPAT

Detailed explanation of each reconciling line item provided in Appendix O

Appendix B: Statutory NPAT reconciliation

$'M 1H 15/16 1H 14/15Statutory NPAT 134.0 61.5Amortisation of intangible assets 20.0 18.7

Acquisition and divestment transaction costs 0.5 5.7

Termination and retention incentive payments 4.1 2.7

Gain on disposal of subsidiaries (72.0) (0.5)

Profit on sale of assets (3.0) -

Non-recurring professional fees 3.1 -

Unwind of deferred tax liability recorded on intangible assets (5.0) (4.6)

Reinstatement of Perennial non-controlling interests (0.8) (0.6)

Income tax attributable 14.5 (2.2)

UNPAT 95.4 80.6

28

Appendix C: Segment performance - Platform

29

Appendix D: Segment performance - Investment Management

Investment Management segment results are shown exclusive of the divested Perennial business 30

$'M 1H 15/16 2H 14/15 1H 14/15 1H 15/16 2H 14/15 1H 14/15

Revenue 10.5 10.1 7.8 43.1 46.5 45.4 Direct Costs (5.1) (5.8) (4.1) (17.8) (19.2) (18.8) Gross Margin (GM) 5.4 4.3 3.7 25.3 27.2 26.6 GM % 0.16% 0.13% 0.15% 0.38% 0.41% 0.41%

Other Revenue - 0.0 - 1.9 3.2 3.0 Share of Equity profit/loss - - - 2.2 2.4 2.6 Operating Expenditure (1.0) (1.3) (1.4) (10.8) (10.7) (10.6) Net Non Cash (0.0) (0.0) (0.0) (0.7) (0.6) (0.5) Net Interest - - - 0.4 0.2 0.1 Income Tax Expense/N.C.I (1.3) (0.9) (0.7) (4.9) (5.5) (6.1) UNPAT 3.1 2.1 1.6 13.4 16.3 15.2

Average FUM ($'b) 6.7 6.5 5.9 13.2 13.5 13.0 Net Operating Margin % 0.13% 0.09% 0.09% 0.25% 0.30% 0.29%

Shadforth Other Investment Management

Appendix E: Shadforth contribution to segments - Investment Management

31

Appendix F: Segment performance - Financial Advice & Distribution

32

$'M 1H 15/16 2H 14/15 1H 14/15 1H 15/16 2H 14/15 1H 14/15

Revenue 82.7 82.1 67.6 98.2 98.7 97.1 Direct Costs (5.9) (5.6) (4.9) (58.5) (56.5) (57.1) Gross Margin (GM) 76.8 76.4 62.7 39.8 42.2 40.0 GM % 1.04% 1.05% 1.09% 0.22% 0.24% 0.24%

Other Revenue 0.7 1.9 0.6 18.0 16.4 17.5 Share of Equity profit/loss 0.1 0.1 0.1 0.5 0.6 0.6 Operating Expenditure (37.6) (41.5) (41.0) (36.8) (36.5) (39.0) Net Non Cash (0.5) (0.6) (0.5) (1.6) (1.6) (2.2) Net Interest 0.0 0.0 (0.1) 0.3 0.4 0.5 Income Tax Expense/N.C.I (11.9) (11.2) (6.1) (7.3) (7.5) (6.3) UNPAT 27.7 25.2 15.6 12.9 13.9 11.1

Average FUA ($'b) 14.6 14.6 13.7 35.8 35.1 33.2 Net Operating Margin % 0.54% 0.51% 0.39% 0.12% 0.13% 0.11%

Shadforth Other Financial Advice and Distribution

Appendix G: Shadforth contribution to segments - Financial Advice & Distribution

33

$'M 1H 15/16 1H 14/15 Change on pcp (%)

Revenue 14.9 13.1 13%Direct Costs (0.8) (0.0) LARGEGross Margin (GM) 14.1 13.1 8%GM % 0.10% 0.10%

Other Revenue - - -Share of Equity profit/loss - - -Operating Expenditure (9.1) (8.5) -7%Net Non Cash (0.1) (0.1) -62%Net Interest 0.0 - -Income Tax Expense/N.C.I (1.5) (1.3) -9%UNPAT 3.4 3.2 8%

Average FUS ($'b) 29.3 25.7 Net Operating Margin % 0.03% 0.04%

$3.2m$3.8m

$3.4m

0.10% 0.11%0.10%

0.04% 0.04% 0.03%

1H 14/15 2H 14/15 1H 15/16

UNPAT G.M% N.O.M%

Appendix H: Segment performance - Trustee Services

34

$'M 1H 15/16 1H 14/15 Change on pcp (%)

Revenue 0.4 0.4 -2%Direct Costs 0.2 0.2 -16%Gross Margin (GM) 0.6 0.6 -7%

Other Revenue 1.3 0.7 97%Share of Equity profit/loss - - -Operating Expenditure (20.9) (19.7) -6%Net Non Cash (0.5) (0.4) -19%Net Interest (2.0) (2.7) 25%Income Tax Expense/N.C.I 11.7 11.3 4%UNPAT (9.8) (10.2) 4%

Appendix I: Corporate and other

35

Appendix J: Shadforth contribution to segments - Corporate and other

$'M 1H 15/16 2H 14/15 1H 14/15 1H 15/16 2H 14/15 1H 14/15

Revenue 0.0 - (0.0) 0.4 0.4 0.4 Direct Costs - 0.4 (0.0) 0.2 (0.2) 0.2 Gross Margin (GM) 0.0 0.4 (0.0) 0.6 0.2 0.6

Other Revenue 1.1 0.1 0.1 0.2 (0.3) 0.6 Share of Equity profit/loss - - - - - - Operating Expenditure 0.0 0.1 (0.0) (20.9) (19.7) (19.7) Net Non Cash (0.1) 0.1 (0.1) (0.3) (0.5) (0.3) Net Interest 0.0 (0.4) (0.3) (2.0) (2.2) (2.4) Income Tax Expense/N.C.I 0.3 0.2 0.2 11.4 10.1 11.0 UNPAT 1.4 0.4 (0.1) (11.2) (12.4) (10.1)

Shadforth Other Corporate

36

$'M 1H 15/16 1H 14/15* Change on pcp (%)

Revenue 93.2 89.8 4%Direct Costs (11.0) (11.1) 1%Gross Margin (GM) 82.2 78.7 5%GM % 0.77% 0.79%

Other Revenue 1.8 0.8 117%Share of Equity profit/loss 0.1 0.1 18%Operating Expenditure (38.6) (49.9) 23%Net Non Cash (0.7) (0.6) -20%Net Interest 0.1 (0.5) 111%Income Tax Expense/N.C.I (12.8) (8.2) -56%UNPAT 32.1 20.4 57%

Average FUMA ($'b) 21.3 19.6 Net Operating Margin % 0.43% 0.30%

Appendix K: ShadforthPlease note that the Shadforth results detailed below are now shown as part of our Financial Advice & Distribution, Investment Management and Corporate and Other segments

*Comparative amounts include the July 2014 Shadforth result to provide a 6 month comparison. IOOF acquired Shadforth in August 2014.

37

38

APPENDIX L

RECONCILIATION OF SEGMENTS TO STATUTORY FINANCIALSSTATEMENT OF COMPREHENSIVE INCOMEFOR THE HALF-YEAR ENDED 31 DECEMBER 2015

1H 15/16 2H 14/15 1H 14/15Statutory Note Ref. Platform

Investment Management

Trustee Services

Corporate and other

$'m $'m $'m $'m $'m $'m $'m $'mGross Margin

Management and Service fees revenue 2-3 203.5 52.7 168.7 12.9 - 401.0 401.9 379.4Other Fee Revenue 2-3 3.3 0.9 12.3 1.9 0.4 18.8 20.5 18.7Service and Marketing fees expense 2-4 (90.7) (19.4) (57.7) (0.0) 0.2 (131.0) (136.3) (124.6)Other Direct Costs 2-4 (2.3) (3.6) (6.4) (0.8) (0.0) (13.1) (7.3) (14.9)Amortisation of deferred acquisition costs 2-4 (0.7) - (0.3) - - (0.6) (0.8) (1.1)

Total Gross Margin 113.1 30.6 116.6 14.1 0.5 275.1 278.0 257.4Other Revenue

Stockbroking revenue 2-3 - - 38.1 - - 38.0 36.3 36.9Stockbroking service fees expense 2-4 - - (21.5) - - (21.5) (20.2) (21.5)Dividends and distributions received 2-3 - (0.0) 0.0 - 0.4 0.4 0.3 0.4Net fair value gains/(losses) on other financial assets at fair value through profit or loss 2-3 - - - - 0.0 0.0 (0.1) 0.1

Profit on sale of financial assets 2-3 - 72.4 2.4 - 0.3 75.0 1.9 0.2Other revenue 2-3 0.4 1.9 2.1 - 0.9 5.2 4.1 5.3Other Revenue adjustments Below - (72.4) (2.4) - (0.3) (75.0) (1.6) -

Total Other Revenue 0.4 1.9 18.8 - 1.3 22.1 20.9 21.4Equity Accounted Profits

Share of profits of associates and jointly controlled entities accounted for using the equity method SOCI*

- 2.2 0.6 - - 2.8 3.2 3.3

Total Equity Accounted Profits - 2.2 0.6 - - 2.8 3.2 3.3Operating Expenditure

Salaries and related employee expenses 2-4 (5.7) (4.5) (40.8) (5.5) (43.4) (100.0) (104.3) (102.4)Employee defined contribution plan expense 2-4 (0.5) (0.3) (3.2) (0.5) (3.3) (7.7) (7.1) (7.3)Information technology costs 2-4 (0.9) (0.5) (7.2) (0.3) (16.5) (25.3) (26.2) (24.4)Professional fees 2-4 (0.2) (0.3) (1.3) (0.1) (1.4) (3.1) (3.2) (3.9)Marketing 2-4 (0.6) (0.1) (2.8) (0.1) (1.7) (5.3) (4.7) (5.0)Office support and administration 2-4 (0.1) (0.3) (3.9) (0.2) (5.1) (9.5) (8.4) (9.4)Occupancy related expenses 2-4 (0.0) (0.5) (5.4) (0.1) (5.1) (11.0) (11.7) (10.6)Travel and entertainment 2-4 (0.4) (0.1) (1.1) (0.2) (1.4) (3.2) (2.8) (3.4)Corporate recharge N/A (40.7) (5.2) (8.6) (2.3) 56.9 (0.0) (0.0) - Other 2-4 - - (0.0) - - (0.0) (0.1) (0.0)

Total Operating Expenditure (49.0) (11.8) (74.3) (9.1) (20.9) (165.1) (168.4) (166.4)Loss on disposal of non-current assets 2-4 - (0.0) (0.1) - (0.0) (0.2) (0.1) (0.0)

Total Operating Expenditure (49.0) (11.8) (74.4) (9.1) (20.9) (165.2) (168.5) (166.5)Net non cash (Ex. Amortisation from acquisitions)

Share based payments expense 2-4 (0.3) (0.1) (0.4) (0.0) (0.5) (1.3) (1.4) (2.1)Depreciation of property, plant and equipment 2-4 (1.5) (0.5) (1.8) (0.1) 0.0 (4.0) (3.6) (2.6)Amortisation of intangible assets - IT development 2-4 (0.9) - - - - (0.9) (0.9) (0.8)

Total Net non cash (Ex. Amortisation from acquisitions) (2.7) (0.7) (2.2) (0.1) (0.5) (6.1) (5.8) (5.5)Net Interest

Interest income on loans to directors of controlled and associated entities 2-3 - 0.2 - - 0.1 0.2 0.2 0.2

Interest income from non-related entities 2-3 0.0 0.3 0.4 0.0 1.6 2.2 2.0 2.0Finance Costs SOCI* - - (0.0) - (3.7) (3.7) (4.3) (4.4)

Total Net Interest 0.0 0.4 0.4 0.0 (2.0) (1.3) (2.1) (2.2)Income Tax & NCI

Non-controlling Interest SOCI* - - (1.3) - - (1.3) (1.1) (1.0)Income tax expense SOCI* (19.0) (21.5) (17.8) (1.4) 17.5 (42.3) (23.4) (22.3)Income tax expense/NCI adjustments Below (0.0) 15.3 0.0 (0.1) (5.8) 9.5 (10.6) (5.0)

Total Income Tax & NCI (19.1) (6.2) (19.2) (1.5) 11.7 (34.1) (35.2) (28.4)42.7 16.4 40.6 3.4 (9.8) 93.3 90.5 79.5

Discontinued Operations 2-2 2.1 2.7 1.0Underlying UNPAT (pre-amortisation of intangible assets) 95.4 93.2 80.6Significant Items

Acquisition and divestment transaction costs 2-2, 2-4 (0.5) (0.6) (5.7)Termination and retention incentive payments 2-4 (4.1) (3.3) (2.7)Recognition of Shadforth onerous lease contracts N/A - (2.1) - Impairment of Plan B brand name N/A - (1.4) - Gain on disposal of subsidiaries 2-2 72.0 1.0 0.5Profit on sale of assets 2-3 3.0 - - Non-recurring professional fees 2-4 (3.1) - -

Income tax expense/NCI adjustmentsUnwind of deferred tax liability recorded on intangible assets N/A 5.0 6.9 4.6

Reinstatement of Perennial non-controlling interests N/A 0.8 1.2 0.6Income tax attributable N/A (14.5) 3.8 2.2

Total Significant Items - Net of Tax 58.6 5.5 (0.4)Amortisation of intangible assets 2-4 (20.0) (19.9) (18.7)Reported Profit/(Loss) per financial statements 134.0 78.9 61.5* SOCI = Statement of Comprehensive Income

Note: Segment results include inter-segment revenues and expenses eliminated on consolidation

Financial Advice &

Distribution

Underlying NPAT excl. Discontinued Operations

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APPENDIX MDETAILED BREAKDOWN OF DISCONTINUED OPERATIONSFOR THE HALF-YEAR ENDED 31 DECEMBER 2015

1H 15/16 2H 14/15 1H 14/15

$'m $'m $'mGross Margin

Management and Service fees revenue 10.4 15.0 16.6Other Fee Revenue 0.2 0.0 0.1Service and Marketing fees expense (3.1) (4.3) (5.6)Other Direct Costs (0.3) (0.2) (0.5)Amortisation of deferred acquisition costs - - -

Total Gross Margin 7.2 10.5 10.5Other Revenue

Stockbroking revenue - - - Stockbroking service fees expense - - - Dividends and distributions received - - - Net fair value gains/(losses) on other financial assets at fair value through profit or loss - - -

Profit on sale of financial assets - - - Other revenue (1.1) (2.0) (2.0)Other Revenue adjustments - - -

Total Other Revenue (1.1) (2.0) (2.0)Equity Accounted Profits

Share of profits of associates and jointly controlled entities accounted for using the equity method

- - -

Total Equity Accounted Profits - - - Operating Expenditure

Salaries and related employee expenses (1.4) (2.3) (4.2)Employee defined contribution plan expense (0.1) (0.1) (0.2)Information technology costs (0.2) (0.3) (0.5)Professional fees (0.1) (0.1) (0.1)Marketing (0.0) (0.0) (0.0)Office support and administration (0.0) (0.0) (0.0)Occupancy related expenses - 0.1 (0.4)Travel and entertainment (0.0) (0.1) (0.1)Corporate recharge - - - Other (0.0) 0.1 0.0

Total Operating Expenditure (1.9) (2.8) (5.5)Loss on disposal of non-current assets - - -

Total Operating Expenditure (1.9) (2.8) (5.5)Net non cash (Ex. Amortisation from acquisitions)

Share based payments expense (0.0) (0.0) (0.0)Depreciation of property, plant and equipment - 0.0 (0.0)Amortisation of intangible assets - IT development - - -

Total Net non cash (Ex. Amortisation from acquisitions) (0.0) (0.0) (0.0)Net Interest

Interest income on loans to directors of controlled and associated entities - - -

Interest income from non-related entities 0.0 0.1 0.1Finance Costs - - -

Total Net Interest 0.0 0.1 0.1Income Tax & NCI

Non-controlling Interest - - - Income tax expense (1.2) (1.7) (1.5)Income tax expense/NCI adjustments (0.8) (1.2) (0.6)

Total Income Tax & NCI (2.0) (3.0) (2.1)Underlying UNPAT (pre-amortisation of intangible assets) 2.1 2.7 1.0

Ordinary Shares - Opening Balance 300,133,752

From To Days Share Issue Shares on Issue Weighted average01-Jul-15 31-Dec-15 184 - 300,133,752 300,133,752

Weighted Average Treasury shares (420,521)

Ordinary Shares - Closing Balance 300,133,752

Weighted Average shares on issue 299,713,231

Statutory UnderlyingNet Profit Attributable to Members of the parent entity 133,986,000$ 95,376,000$ Basic Earnings Per Share 44.7 31.8

IFL - Averaged Weighted Number of Shares on IssueEARNINGS PER SHARE CALCULATION

Half-Year ended 31 December 2015

Appendix N: Earnings per share

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In calculating its Underlying Net Profit After Tax pre-amortisation (UNPAT), the Group reverses the impact on profit of certain, predominantly non cash, items to enable a better understanding of its operational result. A detailed explanation for all such items is provided below.

Unwind of deferred tax liability recorded on intangible assets: Acquired intangible asset valuations for AASB 3 Business Combinations accounting are higher than the required cost base as set under newly legislated tax consolidation rules implemented during 2012. A deferred tax liability (DTL) is required to be recognised as there is an embedded capital gain should the assets be disposed of at their accounting values. This DTL reduces in future periods at 30% of the amortisation applicable to those assets which have different accounting values and tax cost bases. The recognition of DTL and subsequent period reductions are not reflective of conventional recurring operations and are regarded as highly unlikely to be realised due to the IOOF Group's intention to hold these assets long term.

Termination and retention incentive payments: Facilitation of restructuring to ensure long term efficiency gains which are not reflective of conventional recurring operations.

Amortisation of intangible assets: Non-cash entry reflective of declining intangible asset values over their useful lives. Intangible assets are continuously generated within the IOOF Group, but are only able to be recognised when acquired. The absence of a corresponding entry for intangible asset creation results in a conservative one sided decrement to profit only. It is reversed to ensure the operational result is not impacted. The reversal of amortisation of intangibles is routinely employed when performing company valuations. The amortisation of software development costs is not reversed in this manner however.Acquisition and divestment transaction costs: One off payments to external advisers in pursuit of corporate transactions, such as the acquisition of Shadforth and divestment of certain Perennial subsidiaries, which were not reflective of conventional recurring operations.

Income tax attributable: This represents the income tax applicable to certain adjustment items outlined above.

Reinstatement of Perennial non-controlling interests: Embedded derivatives exist given the IOOF Group’s obligation to buy-back shareholdings in certain Perennial subsidiaries if put under the terms of their shareholders’ agreements. International Financial Reporting Standards deems the interests of these non-controlling holders to have been acquired. Those interests must therefore be held on balance sheet as a liability to be revalued to a reserve each reporting period. In calculating UNPAT, the non-controlling interest holders share of the profit of these subsidiaries is subtracted from the IOOF Group result as though there were no embedded derivatives to better reflect the current economic interests of Company shareholders in the activities of these subsidiaries.

Gain on disposal of subsidiaries: During the period, the IOOF Group divested its interests in Perennial Fixed Interest and Perennial Growth Management to Henderson.

Non-recurring professional fees: Costs relating to specialist service and advice providers enlisted to assist the Group in better informing key stakeholders. These services were required following negative media allegations. In particular, but not limited to, process review, senate inquiry support, government relations, litigation defence and communications advice. It is not anticipated that this type and level of support will be required on a recurrent basis.

Profit on sale of assets: Divestments of non-core businesses, client lists and associates. This was not recognised in 2015 due to low scale activity and immateriality.

Appendix O: Explanation of items removed from UNPAT

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Term DefinitionCost to Income Ratio

Ratio of underlying expenses relative to underlying operating revenues exclusive of the benefit funds and discontinued operations

Flagship Platforms

IOOF Employer Super, The Portfolio Service, IOOF Pursuit

FUMA Funds Under Management, Administration and Advice

FUMAS FUMA plus Funds Under Supervision, primarily Corporate Trust clients

Net Interest Cover

Ratio of Earnings Before Interest, Tax, Depreciation and Amortisation relative to the sum of Interest Received and Interest and Other Costs of Finance Paid per the Consolidated Statement of Comprehensive Income

Net Operating Margin

Ratio of underlying revenues including share of associate profits, excluding net interest less underlying operating expenses relative to FUMA

PCP Prior Comparative Period – Half-year to 31 December 2014

Return on Equity

Calculated by dividing annualised UNPAT by average equity during the period

TSR Total Shareholder Return – change in share price plus dividends paid per share in a given period

UNPAT Underlying Net Profit After Tax Pre Amortisation, see Appendix O for a detailed explanation of reconciling line items

Underlying EBITA

Underlying Earnings Before Interest, Tax and Amortisation

Underlying EPS

Calculated with the same average number of shares on issues as the statutory EPS calculation utilising UNPAT as the numerator, a detailed calculation is provided in Appendix N.

VWAP Volume Weighted Average Price

Appendix P: Definitions

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Forward-looking statements in this presentation are based on IOOF’s current views and assumptions and involve known and unknown risks and uncertainties, many of which are beyond IOOF’s control and could cause actual results, performance or events to differ materially from those expressed or implied. These forward-looking statements are not guarantees or representations of future performance and should not be relied upon as such.

IOOF undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this presentation, subject to disclosure requirements applicable to IOOF.

Information and statements in this presentation do not constitute investment advice or a recommendation in relation to IOOF or any product or service offered by IOOF or any of its subsidiaries and should not be relied upon for this purpose. Prior to making a decision in relation to IOOF’s securities, products or services, investors or clients and potential investors or clients should consider their own investment objectives, financial situation and needs and obtain professional advice.

Important disclaimer

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